UK: The Politicians' Promises Of Improving The Working Conditions And Rights Of Employees Comes At A Cost

The forthcoming election in the UK is provoking both the major
parties to make declarations within their respective manifestos
which will have far reaching effects for business if they are
implemented. In an attempt to court voters each party is
promising to introduce measures which will enhance the working
lives of many employees, the financial impact of which will have to
be funded by businesses.

Theresa May and the Conservatives plan to introduce the right
for employees to take up to a year's unpaid leave to care for
elderly relatives whilst their employer keeps their job open,
enshrining all the EU employment law and workers' rights in
English law post-Brexit, bringing in protections for employees with
mental health issues, a place on the board for some workers, the
right to leave for bereaved parents of young children, additional
protections against pensions mis-management and also consideration
is being given to raising the national living wage.

Jeremy Corbyn and the Labour party have a similar raft of plans
to improve the lives of employees with a strong focus on taxing
businesses and high earners in order to be able to pay for all
their new policies.

The bill for all the new advantages extended to employees
largely falls squarely on the shoulders of business and too much
generosity will come back to haunt whichever party gains power in
the shape of less investment in the UK, businesses failing under
the weight of the additional costs and possibly those European
businesses operating out of the UK may decide to leave and set up
shop elsewhere, whilst other overseas businesses may decide not
open a new business the UK at all.

However, it is highly likely that a large number of the proposed
measures may not make it on to the statute book as anything that
seriously threatens the economy may very well find that the policy
is dropped or watered down.

Giambrone advises businesses based in the UK to prepare detailed
flexible plans for the future as there is still a large amount of
uncertainty surrounding Britain's exit from the EU. Any
business that, a) does not have a plan at all and b) does not have
several alternative options which cover a wide range of
eventualities, needs to address this lapse as soon as
possible. Giambrone can offer advice on a wide range of
issues that the Brexit may create, both legal and commercial, and
can create 360 degree strategies from protecting the status of your
foreign employees to ensuring that your intellectual property is
still safe; with additional assistance available from our panel of
professional advisors on tax, finance and IT matters and many other
things.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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